The Present Value of the Series of Dollar Payments in a Currency

question 10

Multiple Choice

The present value of the series of dollar payments in a currency swap per $1 notional principal is $0.03.The present value of the series of euro payments in the same currency swap per €1 is €0.0225.The current exchange rate is $1.05 per euro.If the swap has a notional principal of $100 million and €105 million,find the market value of the swap from the perspective of the party paying euros and receiving dollars.

• A)$519,375
• B)-$2,480,625
• C)$3,000,000
• D)-$3,000,000
• E)-$519,375

Recognize the influence of currency fluctuations on consumer purchasing power and marketing strategies.

Identify the global economic factors affecting marketing strategies and operations.

Describe the role and functions of international and regional trade agreements.

Understand how income distribution affects market targeting and segmentation strategies.

---

Definitions:

Motor Development

The gradual progression of muscle control, movement skills, and physical coordination in infants and children.

Middle Childhood

A developmental stage that typically encompasses the ages of 6-12 years, characterized by significant growth and development in social, cognitive, and emotional areas.

Sex Differences

Refers to the biological and physiological distinctions between males and females, often influencing physical, cognitive, and behavioral aspects.

Attention Deficit Hyperactivity Disorder

A neurodevelopmental disorder characterized by patterns of inattention, hyperactivity, and impulsivity that are more prevalent and severe than typically observed in individuals at a comparable level of development.